Given the Demands for Greater Accountability and Improved Performance,which of the Following

question 97

Multiple Choice

Given the demands for greater accountability and improved performance,which of the following is NOT a voluntary change many boards of directors have initiated?

• A)moving toward having directors from different backgrounds
• B)strengthening the internal management and accounting control systems
• C)compensating directors with stock options rather than with fixed remuneration
• D)establishing and using formal processes to evaluate the board's performance

Differentiate between various forms of credit agreements.

Comprehend the importance of maturity matching in financing.

Grasp why self-liquidating loans are preferred by banks.

Know the effects of not taking prompt payment discounts on borrowing rates.

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Definitions:

Floating-rate Debt

Debt instruments such as bonds or loans with variable interest rates that adjust periodically based on a benchmark interest rate or index.

Market Rates

Refers to the current interest rate or price available in the marketplace for financial instruments or commodities.

Floating-rate Debt

Floating-rate Debt refers to loans or bonds with a variable interest rate, which adjusts periodically based on a benchmark interest rate or index.

LIBOR

The London Interbank Offered Rate, which is a benchmark rate that some of the world’s leading banks charge each other for short-term loans.